Personal Finance
EPF comes under the Employees' Provident Fund Organisation (EPFO) while PPF was launched by the government to encourage small savings.
Updated : May 17, 2023, 09:13 PM IST | Edited by : Maitry Kothari
A non-constitutional organisation called the Employees' Provident Fund Organisation (EPFO) encourages workers to save aside money for their retirement. The organization's programmes cover both domestic and foreign employees (from nations with which the EPFO has signed bilateral agreements).
Employees’ Provident Fund: EPF is the main scheme under the Employees' Provident Funds and Miscellaneous Act, 1952. The Employees' Provident Fund Organisation (EPFO) oversees the administration of the programme. EPF is funded by 12% of the employee's base pay and dearness allowance from both the employee and employer. When the employer retires, they receive a lump amount that includes interest on both their own and the employer's contributions. The interest rate on EPF deposits is currently 8.15% per annum.
Public Provident Fund: PPF is one of the most well-liked long-term savings and investment programmes, primarily because it combines safety, returns, and tax benefits.
What is the difference between EPF and PPF?
When you quit your work, you can take the funds from your EPF account. However, the PPF deposit cannot be withdrawn until the account reaches maturity, which takes 15 years from the deposit date.
Advantages of Employees' Provident Fund (EPF):
Disadvantages of Employees’ Provident Fund (EPF):
Advantages of public Provident Fund (PPF):
Disadvantages of Public Provident und (PPF):